Financial Instability

Inter-disciplinary skills shortage

Capitalism leads to specialisation, but climate change is a multi-disciplinary set of problems and solutions. Without wide knowledge it is difficult to appreciate the problems or understand potential solutions.

Incumbents favoured

Capitalism favours incumbents. A ‘catalyst’ is needed to overcome them, especially the fossil fuel industry. Competitive renewables are beginning to provide such a catalyst. Widespread carbon pricing, if enacted to a sufficient level, will provide much stronger incentives to replace fossil based energy systems. However, fossil fuel interests work to keep the industry embedded by repelling workable climate legislation.

Inefficient Economic Instruments Favoured

Carbon markets (a form of carbon pricing) have proved largely ineffectual to date. Unfortunately capitalism favours them over explicit carbon pricing, which is more efficient at exerting consistent downward pressure on greenhouse gas emissions, while minimising economic damage.